TAX BENEFIT UNDER LIC

Made By:
SHAURYA JAISWAL

Lic Policy Tax Benefitsareavailableformostofthe

Lic Insurance Plans. Many of the Life Insurance
PlansgivesyouanadditionaladvantageofLicPolicy
Tax Benefits. Income tax rates increases along with
theincreaseinyourIncome.Youcansaveyourhard
earned moneyby investing it in the Lic Insurance
Plans. There are many plans with Lic policy Tax
Benefits.Fromthosefindthebest Lic Policy for Tax
Benefit.

InmostoftheLicInsurancePlans,LicPolicyTaxBenefits
are available for the premiums you paid. Contribution
towards lic policy is allowed as deduction in income
underExisting Income Tax Laws.That is you not only
providefinancialsecuritytoyourfamilyintheunfortunate
event, but also reap the Lic Policy Tax benefitsfromLic
tax saving plansthroughpremiumcontributioninULIPs.

LICpolicytaxbenefits
1) Deduction allowable from Income for payment of Life
InsurancePremium(Sec.80C).
(a)Premiumpaidinordertokeepinforceaninsuranceonthelifeof
the assessee / Spouse / any child and in the case of HUF, under an
insurance
policy,
(other
than
a
contract
for
a
deferredannuity)issuedonorbefore31stMarch2012shallbeeligible
for deduction to the extent of 20% of the actual capital SA (sum
assured).
(b)Premiumpaidinordertokeepinforceaninsuranceonthelifeof
the assessee / Spouse / any child and in the case of HUF, under an
insurance
policy,
(other
than
a
contract
for
a
deferredannuity)issuedonorafter1stApril2012shallbeeligiblefor
deductiontotheextentof10%oftheactualcapitalSA(sumassured).

Whereasthepolicyissuedonorafter1stApril2013for,
(i) A person with severe disability / a person with disabilityas
referredtoinsection80U,or
(ii) Any person who is suffering from ailment or disease as
mentioned in therules made under Sec80DDB. Deductionunder
section80DDBistotheextentof15%oftheactualcapitalSA.
(c) ContributiontodeferredannuityPlansinordertokeepinforce
a contract for deferred annuity, on his own life / spouse / any
child, provided such contract doesnt contain a provision to
exerciseanoptionbytheinsuredtoreceiveacashpaymentinlieu
ofthepaymentofannuityiseligiblefordeduction.
(d) Contribution to Annuity Plans like New Jeevan Dhara, New
JeevanDharaI&JeevanAkshayaVI.

2) Lic Policy Tax benefits for Jeevan Nidhi Plan and

NewJeevanSurakshaIPlan(Undersec.u/s80CCC)
Adeductiontoanindividualforanyamountpaidbyhimfromhis
taxable income in the above annuity plans for receiving pension
(from the fund set up by the Corporation under the Pension
Scheme)isallowed.

3) Lic Policy Tax Benefits : Deduction under section

80D
(a)DeductionallowableuptoRs.15,000ifyoupaidanamountto
keepinforceaninsuranceonhealthofassessee/hisfamily/any
contributionmadetothecentralGovernmentHealthScheme/on
accountofhealthcheckupoftheassesseeorhisfamily.

(b)AdditionaldeductionuptoRs.15000ifyoupaidanamountto
keep in force an insurance on health of parents / on account of
healthcheckupoftheparentoftheassessee,whetherdependentor
not.
(c) In case of HUF (Hindu Undivided family), deduction is
allowableuptoRs.15000ifanamountispaidtokeepinforcean
insuranceonhealthofanymemberofthatHUF.
(d)DeductionwillbeuptoRs.20000,ifthesumspecifiedin(a)/
(b)/(c)ispaidtokeepinforceaninsuranceonthehealthofany
personspecifiedthereinwhoisaseniorcitizen(thepersonwhois
of60yearsormoreduringthepreviousyear)
(e) Ifthe amounts are paid in (a) or (b) or (c) on account of
preventive health check up, thededuction shall be allowed to the
extentitdoesnotexceedinaggregateRs.5000.

(f)Forthedeductionpurpose,thepaymentshallbemadeby
i Any mode, including cash. In respect of any sum paid on
accountofpreventivehealthcheckup.
ii.Anymodeotherthancashinallothercases.
g) The insurance as mentioned above shall be in accordance
withtheschemeframedby
iTheGeneralInsuranceCorporationofIndiaasapprovedbythe
CentralGovernmentinthisbehalfor;
ii. Any other insurer and approved by the Insurance Regulatory
andDevelopmentAuthority.

4) Lic policy Tax Benefits : Jeevan Aadhar Plan

(Sec.80DD):
iDeductionfromtotalincomeuptoRs.50000/-allowableonamount
depositedwithLICformaintenanceofanhandicappeddependent.
ii Rs.1,00,000/- where handicapped dependent is sufferingfrom
severedisability.

5) Lic Policy Tax Benefits : Exemption in respect of

commutationofpensionunderJeevanSuraksha&Jeevan
NidhiPlans:
Lic Policy Tax Benefits Under Section 10(10A) (iii) of the
Income-taxAct, any payment received by way of commutations of
pensionoutoftheJeevanSuraksha&JeevanNidhiAnnuityplansis
exemptfromtaxbenefits.

6) Lic Policy Tax Benefits : Income tax exemption on

Maturity/DeathClaimsproceedsunderSection10(10D)
AsperSection10(10D)oftheIncomeTaxAct,1961,anysum
receivedunderaLifeInsurance,includingthesumallocatedby
wayofbonusonsuchpolicyisexemptfromLicPolicytax
benefitswherethesumisreceivedasadeathbenefit.

THANKYOU